The government might soon impose a green tax on old vehicles which causes a lot of pollution in a bid to protect the environment and curb pollution.
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As tweeted by the Ministry of Road Transport and Highways (MoRT&H) transport vehicles older than 8 years could be charged Green Tax at the time of renewal of fitness certificate, at the rate of 10% to 25% of road tax. Additionally, personal vehicles will be charged at the time of renewal of Registration Certification after 15 years.
“MoRT&H is issuing an advisory to States & UTs to impose Green Tax on older vehicles. It is proposed that Green Tax may be levied on commercial vehicles that are more than 8 years old & personal vehicles more than 15 years old,” tweeted the Ministry.
Six states and one union territory are already levying Green Tax on such vehicles. As older vehicles are more polluting and their fuel and maintainance costs are much higher, hence the need to impose this tax on older vehicles was felt.
Public transport vehicles such as city buses will be charged lower Green tax, Higher Green tax (50% of Road Tax) for vehicles being registered in highly polluted cities & Differential tax, depending on fuel (petrol/diesel) and type of vehicle.
However, vehicles like strong hybrids, electric vehicles and those running on alternative fuels like CNG, ethanol and LPG will be exempted while the revenue collected through the green tax will be utilised for tackling pollution, said the Ministry of Road Transport and Highways. Apart from these, vehicles used in farming such as tractor, harvestor, and tiller will be exempted from the tax.
The Union Minister of Road Transport and Highways, Nitin Gadhkari has approved to levy a “Green Tax” on old vehicles which are polluting the environment. The proposal will now go to the states for consultation before it is formally notified.
